Mumbai: The rift within the Bombay Parsi Punchayet (BPP) over its proposal to convert Leave and Licence agreements into permanent tenancies for residents of Parsi housing colonies (baugs) has deepened, with the majority trustees defending the move as a long-overdue welfare measure and dissenting trustees warning of serious legal and financial consequences.
BPP Chairman Viraf Mehta, along with trustees Maharukh Noble and Armaity Tirandaz, has issued an open letter to the Parsi community defending the proposed policy, which seeks to provide permanent housing security to around 1,500 families currently residing under free Leave and Licence arrangements.
Responding to objections raised by three dissenting co-trustees, the trio argued that licence holders remain vulnerable to arbitrary eviction during changes in the board's composition or personal disputes. "A licensee is far easier to remove, and everyone in that room knows it," the trustees said, referring to past instances where licence conditions were allegedly used to pressure residents, including a widowed mother.
The majority trustees also sought to address concerns over the financial implications of the proposal, clarifying that beneficiaries would bear the stamp duty costs, in line with practices followed by other Parsi trusts. They said cases involving security deposits, affecting around 300 to 400 flats, have been temporarily put on hold pending tax advice, with plans to convert deposits into donations to reduce the Trust's liabilities. They added that any decision regarding Wadia Baugs would await discussions with Nusli and Ness Wadia.
The trustees further rejected concerns that the proposal would weaken the Trust's long-standing 'Parsi-only' covenant, stating that notarised affidavit-cum-undertakings and legally vetted protective clauses had been incorporated to safeguard community interests. They also criticised opposing trustees for walking out of board meetings instead of participating in discussions, while assuring that tenancy surrender values would be capped at 20 per cent after a five-year lock-in period.
However, trustee Adil Malia, one of the principal opponents of the proposal, maintained that converting licence holders into tenants could significantly dilute the Trust's control over its properties. He cautioned that, under the Maharashtra Rent Control Act, reclaiming possession from tenants could become a lengthy, expensive and uncertain legal process.
Malia questioned the timing of the proposal, noting that the legal opinions relied upon by the majority trustees were obtained nearly four years ago. "If the case was so compelling, why did the majority trustees not act four years ago? Why the sudden urgency now, barely eleven months before the elections?" he asked.
He also expressed concern that the proposal could undermine the enforceability of the 'Parsi-only' covenant, arguing that the issue remains legally unsettled. Calling for caution, Malia said trustees have a fiduciary duty to protect Trust property and warned that the proposed conversion could create an irreversible precedent with long-term consequences for the community.
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